Making Energy Efficiency a Priority, Fred Moore, Dow Chemical Company

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Making Energy Efficiency a Priority

Fred MooreGlobal Director,

Manufacturing & Technology, EnergyThe Dow Chemical Company

211-5-09

About Dow

Diversified chemical company, harnessing the power of science and technology to improve living daily

Founded in Midland, Michigan in 1897

Supplies more than 3,300 products to customers in 160 countries

Annual sales of $57.4 billion

46,000 employees worldwide

Committed to Sustainability

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Chemical Industry and Energy Efficiency

One of the largest U.S. industries - $689 billion enterprise

Employs up to 850 thousand nationwide

Largest energy consumer in the manufacturing sector

Reduced fuel and power consumed per unit of output by 28 percent since 1990

As a result, chemical industry has cut GHG emissions by 16%

411-5-09

Potential of Energy Efficiency

UN Foundation Report

Cooperation and action within G8+5 countries to improve energy efficiency to 2.5% per year (double the global average) would:

Avoid $3 trillion worth of new power generation

Eliminate the same amount of energy supplied by 2,000 coal power plants

Save consumers $500 billion per year by 2030

National Petroleum Council Report 2007

Current available efficiency technology could reduce energy use in the U.S. an additional 15-20%, if applied

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Oil & GasOil & Gas

FeedstockEthane, Propane Butane, Naphtha

FeedstockEthane, Propane Butane, Naphtha

SteamSteam

PowerPower

600 trillion Btu/yr

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Energy Efficiency Matters

Source: Energy Information Administration. World Energy Projections Plus (2008).

Energy Intensity Performance

3,500

3,750

4,000

4,250

4,500

4,750

5,000

5,250

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Btu

/lb.

0.00.51.01.52.02.53.03.54.04.55.05.56.06.57.07.58.08.59.0

Cum

ulative $ Billions Savings

Cumulative Savings ($) Energy Intensity(BTU/lb)

Since 1994 through 2008Energy Intensity Reduction Savings $ 8.6 Billion

Over 1,600 Trillion BTUs

$ 8.6 Billion

31st Oxford Energy Seminar

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Dow Leading EnergyIntensity Improvements

Energy Intensity Comparison 1990-2008

40

50

60

70

80

90

100

110

120

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Indexed Intensity 1990=100%

Dow Global Energy Consumption American Chemical Industry Energy Consumption USA Total Energy Consumption

31st Oxford Energy Seminar

811-5-09

Reducing Dow’s GHG Emissions

0

10

20

30

40

50

1990 1995 2000 2005

Kyoto GHGs

Mill

ions

of

met

ric t

ons

CO

2e

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Reducing Dow’s GHG Emissions

0

10

20

30

40

50

60

1990 1995 2000 2005 2008

Kyoto GHGs

Mil

lio

ns

of

met

ric

ton

s C

O2e

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Driving Energy Efficiency at Dow

Reaching Beyond the Fence:

Dept of Energy – “Save Energy Now”

Energy Star’s – Industrial Energy Star Program

Texas Industries of the Future – Programs, Texas Show Case

Alliance to Save Energy

ACEEE

American Chemistry Council

Others

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It’s Not Just Energy Efficiency

1 – Energy Efficiency

2 – Expand Supplies

3 – Diversify Fuels and Feedstocks

Nuclear, Clean Coal, Coal to Gas, Coal to Chemicals, Bio Feedstocks, Renewables - Solar, Tidal, Wind, Hydro

4 – Research, Development, and Infrastructure

More Basic Research in Energy, Improved Infrastructure, Upgrade aging coal assets & transmission systems, Nuclear to chemicals, Storage of energy

1211-5-09